Maine State Income Tax Protest and Petition for Reconsideration

PETITION FOR RECONSIDERATION OF MAINE INCOME TAX ASSESSMENT

TABLE OF CONTENTS

1. Caption and Identifying Information
2. Statement of Timeliness and Jurisdiction
3. Background and Procedural History
4. Issues Presented for Reconsideration
5. Statement of Facts
6. Legal Argument
7. Penalty and Interest Abatement Request
8. Requested Relief
9. Hearing Request and Reservation of Appeal Rights
10. Designation of Representative and Power of Attorney
11. Verification
12. Certificate of Service
13. Maine Practice Notes
14. Sources and References

1. CAPTION AND IDENTIFYING INFORMATION

STATE OF MAINE

DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

MAINE REVENUE SERVICES — INCOME/ESTATE TAX DIVISION

RE: PETITION FOR RECONSIDERATION PURSUANT TO 36 M.R.S. § 151

2. STATEMENT OF TIMELINESS AND JURISDICTION

2.1. Petitioner [TAXPAYER NAME] ("Petitioner" or "Taxpayer") timely files this Petition for Reconsideration under 36 M.R.S. § 151(1).

2.2. The Notice of Assessment dated [__/__/____] was received by Petitioner on [__/__/____]. This Petition is filed on [__/__/____], which is within the 60-day statutory window prescribed by 36 M.R.S. § 151(1).

2.3. Petitioner is "aggrieved" within the meaning of § 151(1) because the assessment imposes additional Maine income tax, interest, and penalty in the amount of $[TOTAL], which Petitioner contests as erroneous.

2.4. Maine Revenue Services ("MRS") has jurisdiction to reconsider the assessment under 36 M.R.S. § 151(1). The State Tax Assessor's responding division has 90 days from receipt of this Petition (subject to mutual extension) to grant or deny, in whole or in part, the relief requested.

3. BACKGROUND AND PROCEDURAL HISTORY

3.1. Petitioner is [a Maine resident individual / a domiciled non-resident / a corporation organized under the laws of [STATE] doing business in Maine].

3.2. Petitioner timely filed a Maine [Form 1040ME / Form 1120ME / Form 1041ME] for tax year(s) [YEAR] on [__/__/____], reporting Maine taxable income of $[AMOUNT] and a Maine income tax liability of $[AMOUNT].

3.3. On [__/__/____], MRS issued [a Notice of Audit / Information Document Request / Notice of Proposed Assessment] asserting [describe adjustments].

3.4. On [__/__/____], MRS issued the Notice of Assessment that is the subject of this Petition, asserting additional tax of $[AMOUNT], interest of $[AMOUNT], and penalty of $[AMOUNT].

3.5. Petitioner has paid $[AMOUNT / NONE] toward the assessment. Petitioner does not waive the right to a refund of any amounts paid, including under 36 M.R.S. § 5278 (income tax refunds).

4. ISSUES PRESENTED FOR RECONSIDERATION

4.1. Whether MRS erred in [describe primary adjustment — e.g., recharacterizing distributive share of S-corporation income as Maine-source under 36 M.R.S. § 5142].

4.2. Whether MRS erred in [describe secondary adjustment — e.g., disallowing the credit for income tax paid to another jurisdiction under 36 M.R.S. § 5217-A].

4.3. Whether MRS erred in imposing the [failure-to-file / accuracy-related / negligence] penalty under 36 M.R.S. § 187-B where Petitioner had reasonable cause and acted in good faith.

4.4. Whether interest should be abated to the extent attributable to MRS delay or error pursuant to 36 M.R.S. § 186.

5. STATEMENT OF FACTS

5.1. [Set out chronological, fact-specific narrative supporting each issue. Tie each fact to a documentary exhibit. Number paragraphs sequentially.]

5.2. [Describe Petitioner's residency / domicile facts: location of permanent abode, days in Maine, driver's license, voter registration, motor vehicle registrations, homestead exemption claimed in another state, etc., where domicile is at issue under 36 M.R.S. § 5102(5).]

5.3. [Describe nature of income items at issue: source, character, apportionment factors under 36 M.R.S. §§ 5210–5212 (corporate apportionment) where applicable.]

5.4. [Describe credits or deductions at issue and supporting documentation.]

5.5. Exhibits supporting these facts are attached:

6. LEGAL ARGUMENT

6.1. Standard of Review.

The State Tax Assessor's reconsideration is conducted on the administrative record supplemented by submissions from the taxpayer. 36 M.R.S. § 151(1). Although the taxpayer carries the burden of proof on appeal, MRS must apply the law correctly and may not impose tax in excess of that authorized by statute.

6.2. Issue 1 — [Substantive Tax Issue].

[Argument citing the operative provision of Title 36, applicable MRS Rules (Code of Maine Rules, Chapter 18 series), and Maine case law. Suggested authorities to consider:]

• 36 M.R.S. § [___] (governing statute);
• Code Me. R. tit. 18-125, Ch. [___] (MRS Rule);
• Apex Custom Lease Corp. v. State Tax Assessor, 1998 ME 27, 705 A.2d 1310 (statutory construction);
• Du Pont De Nemours v. State Tax Assessor, 675 A.2d 82 (Me. 1996) (apportionment);
• Ticonic Bank v. Stackpole, 41 Me. 302 (residency/domicile principles).

6.3. Issue 2 — [Substantive Tax Issue].

[Second legal argument with authority.]

6.4. Issue 3 — Penalty Abatement.

Under 36 M.R.S. § 187-B(7), penalties may be waived upon a showing of reasonable cause. Petitioner relied in good faith upon [professional advice / IRS guidance / prior MRS positions / facts then reasonably believed to be correct] and exercised ordinary business care and prudence. Reasonable cause exists where the taxpayer's conduct demonstrates that the failure was not the result of willful neglect.

6.5. Issue 4 — Interest Abatement.

To the extent any interest accrued because of unreasonable error or delay by MRS in performing a ministerial or managerial act, abatement is appropriate.

7. PENALTY AND INTEREST ABATEMENT REQUEST

7.1. Petitioner respectfully requests waiver of all penalties asserted, including but not limited to penalties under 36 M.R.S. § 187-B(1) (failure to file), § 187-B(2) (failure to pay), § 187-B(4-A) (negligence), and § 187-B(5-A) (substantial understatement), on the ground of reasonable cause.

7.2. Petitioner requests abatement of interest under 36 M.R.S. § 186 to the extent attributable to MRS error or unreasonable delay.

8. REQUESTED RELIEF

WHEREFORE, Petitioner respectfully requests that the State Tax Assessor:

• A. Abate the assessment in full and adjust Petitioner's account accordingly;
• B. In the alternative, reduce the assessment to $[AMOUNT], reflecting the corrections set forth in Section 5;
• C. Waive all penalties on the ground of reasonable cause under 36 M.R.S. § 187-B(7);
• D. Abate interest attributable to MRS delay under 36 M.R.S. § 186;
• E. Issue a written reconsidered decision pursuant to 36 M.R.S. § 151(1);
• F. Grant such other and further relief as is just and proper.

9. HEARING REQUEST AND RESERVATION OF APPEAL RIGHTS

9.1. ☐ Petitioner requests an informal conference with the responding division to present additional information and argument before issuance of the reconsidered decision.

9.2. Petitioner reserves all rights to appeal an adverse reconsidered decision to:

• ☐ The Maine Board of Tax Appeals under 36 M.R.S. § 151-D (if amount in controversy is at least $1,000 and not greater than $500,000); or
• ☐ The Maine Superior Court under 36 M.R.S. § 151(2) and M.R. Civ. P. 80C.

9.3. Any such appeal will be filed within 60 days after Petitioner's receipt of the reconsidered decision, as required by § 151(2).

9.4. Petitioner reserves the right to elect "deemed denial" treatment under § 151(1) if no decision is issued within 90 days (plus any mutually agreed extension).

10. DESIGNATION OF REPRESENTATIVE AND POWER OF ATTORNEY

10.1. Petitioner designates the following representative to act on Petitioner's behalf in this matter and authorizes MRS to communicate directly with said representative:

10.2. MRS Form 2848-ME (Power of Attorney and Declaration of Representative) is attached.

11. VERIFICATION

STATE OF [STATE]

COUNTY OF [COUNTY], ss.

I, [TAXPAYER / OFFICER NAME], being first duly sworn, depose and say that I am the [Petitioner / authorized officer of Petitioner] in the foregoing Petition; that I have read the Petition and know the contents thereof; and that the same is true to my own knowledge except as to those matters stated upon information and belief, and as to those I believe them to be true.

[________________________________]

[TAXPAYER NAME / OFFICER NAME AND TITLE]

Sworn to and subscribed before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public

(My Commission Expires: [_______________])

12. CERTIFICATE OF SERVICE

I certify that on [__/__/____], I caused a true copy of the foregoing Petition for Reconsideration, with all exhibits, to be served upon:

Maine Revenue Services
[Issuing Division — e.g., Income/Estate Tax Division]
P.O. Box 1060
Augusta, ME 04332-1060

by ☐ certified mail, return receipt requested ☐ Maine Tax Portal upload ☐ hand delivery ☐ overnight courier with delivery confirmation.

[________________________________]

[REPRESENTATIVE NAME]

13. MAINE PRACTICE NOTES

• 60-day reconsideration deadline is jurisdictional. Under 36 M.R.S. § 151(1), failure to file a petition for reconsideration within 60 days of receipt of the Notice of Assessment forecloses all subsequent review — including Superior Court refund actions. There is no equitable tolling for taxpayers who later pay and seek a refund. Calendar the deadline immediately and use a delivery method that produces a verifiable receipt.
• No Maine tax court. Maine has no specialized trial-level tax court. After reconsideration, taxpayers proceed either to the Maine Board of Tax Appeals (administrative) or directly to the Maine Superior Court (judicial). The Board does not exist for disputes under $1,000 or over $500,000.
• Burden of proof on the taxpayer. 36 M.R.S. § 151(2)(F) places the burden on the taxpayer at the Board and in Superior Court. Build the documentary record during the reconsideration phase; some Board decisions, and most Superior Court reviews, rely heavily on the administrative record.
• De novo review. Superior Court review of tax assessments is de novo, not the deferential review otherwise applicable under M.R. Civ. P. 80C — see § 151(2)(F).
• Interest continues to accrue. Interest accrues during reconsideration and appeal at the rate established annually by the State Tax Assessor pursuant to 36 M.R.S. § 186. Consider partial payment to stop the run of interest, taking care to preserve the protest character of the payment.
• Confidentiality. All return information and audit work product is confidential under 36 M.R.S. § 191. Mark all submissions accordingly.
• Taxpayer Bill of Rights. 36 M.R.S. § 112(7-A) requires MRS to furnish a plain-language statement of taxpayer rights and obligations during audits. The current version is the Maine Taxpayer Bill of Rights publication issued by MRS.
• Reasonable cause penalty waiver. 36 M.R.S. § 187-B(7) authorizes waiver of most penalties for "reasonable cause." Document the factual basis (reliance on competent professional advice, complex novel issue, illness, records destruction by casualty, etc.) contemporaneously.
• Settlement authority. MRS settlement authority lies with the responding division during reconsideration. Settlement at the Board or Superior Court level requires Attorney General involvement under 5 M.R.S. § 191.
• Federal/Maine conformity. Maine generally conforms to the Internal Revenue Code as of a fixed date set forth in 36 M.R.S. § 111(1-A). Confirm the current conformity date when relying on federal authorities.

14. SOURCES AND REFERENCES

• 36 M.R.S. § 151 — Review of decisions of State Tax Assessor: https://legislature.maine.gov/statutes/36/title36sec151.html
• 36 M.R.S. § 151-D — Maine Board of Tax Appeals: https://legislature.maine.gov/statutes/36/title36sec151-D.html
• 36 M.R.S. § 112 — State Tax Assessor; Taxpayer Bill of Rights: https://legislature.maine.gov/statutes/36/title36sec112.html
• 36 M.R.S. § 186 — Interest: https://legislature.maine.gov/statutes/36/title36sec186.html
• 36 M.R.S. § 187-B — Penalties: https://legislature.maine.gov/statutes/36/title36sec187-B.html
• 36 M.R.S. § 191 — Confidentiality: https://legislature.maine.gov/statutes/36/title36sec191.html
• Title 36 (full text PDF): https://www.mainelegislature.org/legis/statutes/36/title36.pdf
• Maine Revenue Services — Taxpayer Rights: https://www.maine.gov/revenue/about/taxpayer-rights
• Maine Taxpayer Bill of Rights (2023 ed.): https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/TBOR_book_2023.pdf
• Maine Board of Tax Appeals: https://www.maine.gov/boardoftaxappeals/
• Maine Tax Portal: https://revenue.maine.gov/
• Du Pont De Nemours v. State Tax Assessor, 675 A.2d 82 (Me. 1996)
• Apex Custom Lease Corp. v. State Tax Assessor, 1998 ME 27, 705 A.2d 1310
• M.R. Civ. P. 80C — Review of governmental action: https://www.courts.maine.gov/rules/

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Maine must review and customize this document before filing. Tax statutes, MRS rules, and procedural deadlines change frequently; verify all authorities and dates before use.